The October release (Update 8.1) of Microsoft Dynamics 365 for Finance and Operations made significant improvements with lot of new features and functionalities added in Financial management modules.
‘Dual currency’ concept is one of them to track all sub-ledger transactions in reporting currency, this has given the real purpose to the reporting currency by not just being used for general ledger reporting but also at sub-ledger level for reporting and other functionalities. Microsoft termed reporting currency as ‘Secondary accounting currency’.
Let’s see the impact of this change to different modules in Dynamics 365 for finance and operations,
Accounts Payable and Accounts receivable:
You can now personalize and add the “Amount in reporting currency” field in vendor and customer transaction form which also means that the field has been added in transaction tables and can be further used in reporting. The transaction form also shows the balance in reporting currency for every transaction.
Note that the reporting currency amounts for existing transactions is updated based on the amount that posted to general ledger.
Vendor and customer transaction reports has been enhanced to show the results in reporting currency.
Cash and bank management:
Similarly, in cash and bank management new field “Amount in reporting currency” has been added to bank transaction form. For new transactions, the amounts are automatically added to the bank account tables. For existing transactions, the reporting currency amounts must be added through Wizard from Cash and bank management module.
The wizard recommends the reporting currency amounts based on the amount that posted in general ledger. However, the amounts can be overridden but please note a change may result a different reporting currency amount in the Cash and bank management sub-ledger and General ledger.
It is recommended to run the wizard as soon as possible after upgrading.
Cash and bank management > Setup > Add reporting currency amounts to bank account transactions.
Once the wizard is successfully completed, the reporting currency amounts will be updated in the bank transactions form,
Reporting currency capability has more impact on fixed asset module especially on handling the depreciation of fixed assets in reporting currency.
Again, there is new field ‘Amount in reporting currency’ added to the fixed asset tables. For new transactions, the amounts are automatically added to the fixed asset tables. For existing transactions, the reporting currency amounts must be added through wizard from Fixed asset module.
This wizard recommends the reporting currency amounts for existing transactions based on the exchange rate at the time of acquisition. The exchange rate and reporting currency amounts can be modified. These amounts will not post to General ledger.
Fixed assets > Setup > Add reporting currency amounts to fixed asset books.
On clicking next,wizard gives you more information of what happens upon clicking Finish and cancel. Important to consider, you will not be able to run depreciation proposal until you confirm the reporting currency amounts are updated.
Upon clicking finish, fixed asset transactions will be updated with reporting currency amounts.
Once you confirm that all reporting currency amounts on the fixed asset book transactions are updated, you will be able to run the depreciation proposal and calculate depreciation for reporting currency based on the updated amount in fixed asset transaction.
Note: After confirming the reporting currency amounts have been updated, the wizard can no longer be run.
Fixed asset journal line form has been enhanced with new fields ‘Debit in reporting currency’ and ‘Credit in reporting currency’ to post fixed asset transactions in reporting currency.
From the general ledger standpoint, the reporting currency will continue to be calculated for every transaction posted in general ledger. However, you can now define default exchange rate type for reporting currency amounts in the ledger form and on individual main accounts.
A new journal type and a new journal entry form ‘‘Reporting currency adjustment’ has been added to post transactions only in reporting currency.
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